On Monday, Morgan Stanley increased its price target for Walt Disney shares (NYSE:DIS) from $110 to $135, while maintaining an Overweight rating on the stock. The firm highlighted a positive outlook for Disney's streaming services, anticipating a quicker and more assured route to profitability in the coming quarters and years.
The adjustment in the price target reflects an expectation that by the end of the fiscal year 2024, two of Disney's most significant business segments—streaming and parks—will show considerable improvement. The streaming service is projected to become profitable, and growth in the parks segment is expected to accelerate.
Morgan Stanley's analysis suggests that these developments will be pivotal for Disney's stock performance. The firm's commentary indicates a strong belief in the media conglomerate's potential to enhance shareholder value through these key areas of its business.
The revised price target of $135 represents a significant increase from the previous target of $110. This change is based on the firm's raised estimates and the confidence in Disney's strategic direction, particularly regarding its streaming services and theme park operations.
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